(1) Eligible postsecondary institutions as defined under RCW 28B.92.030(4) and WAC 250-21-010(5) applying for participation in state financial aid programs will undergo a rigorous review process including, but not limited to, evaluations of administrative capacity and electronic systems; adequacy of financial aid staffing; and historical performance including, but not limited to, the last five years of the institution's participation status and performance in Title IV programs, accreditation status, changes in ownership or majority control, legal or regulatory issues, student complaints, financial strength, and student outcome performance measures.

(a) An institution terminated due to unsatisfactory performance must wait a minimum of one year from the date of termination prior to initiating a new application.

(b) Institutional performance measure information collected for evaluation may include, but is not limited to:

(i) Student completion rates;

(ii) Student placement rates;

(iii) Federal student loan cohort default rates;

(iv) Annual financial statements;

(v) U.S. Department of Education financial composite scores;

(vi) Federal participation status and program review findings;

(vii) State reauthorization or relicensing reports;

(viii) Accrediting agency reports, show cause or findings;

(ix) Enrollments by program;

(x) Intent to create or terminate programs;

(xi) Enrollment trends;

(xii) Pending legal or regulatory issues;

(xiii) Written student complaints;

(xiv) Ownership or majority control history; and

(xv) Any other information relevant to institutional eligibility as requested by the office.

(c) In evaluating completion and placement standards, the office will rely on the standards of the institution's accrediting agency or the standard established between the office and the institution.

Multiple year averages may be considered in evaluating these standards.

(d) Generally, institutional applicants must participate in federal Title IV student financial aid programs in a fully certified status. Applicants that are provisionally certified will be evaluated on a case-by-case basis on the degree to which the underlying causes of the provisional certification indicate an enhanced risk to state funds.

(e) The office will provide a public notification of institutions undergoing review for participation in state financial aid programs and will accept and consider public comment during the period specified in the notification.

(2) Institutional applicants which meet the required standards for participation and are approved by the office may be required to have eligible student data incorporated into legislative cost and forecasting models prior to receipt of state financial aid funding. All newly approved institutions will be evaluated on the performance measures listed under (1)(b) for a minimum of five years of successful participation.

(3) Nothing in this section shall prevent the office, in the exercise of its sound discretion, from denying eligibility to an institution which the office determines is unable to properly administer state financial aid programs or provide advertised services to its students.